In the United States, Federal credit unions are chartered by and overseen by the National Credit Union Administration (NCUA), which also provides deposit insurance similar to the manner in which the Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to banks.

The sum that you may borrow from a credit union depends on the amount you have deposited with it. The more time you are an associate, the larger the sum you are permitted to borrow from it. Because there is no profit made by the CU, you will have loan schemes at sympathetic rates compared to any other banking institutions.